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Contemporary Engineering Economics (4th Edition)
(49 customer reviews)
This book is intended for undergraduate engineering students taking the introductory engineering economics course at the university level.
The fourth edition of Contemporary Engineering Economics has been thoroughly revised and updated while continuing to adopt a contemporary approach to the subject, and teaching, of engineering economics. This text aims not only to build a sound and comprehensive coverage of engineering economics, but also to address key educational challenges, such as student difficulty in developing the analytical skills required to make informed financial decisions.
- Amazon Sales Rank: #409559 in Books
- Published on: 2006-07-06
- Ingredients: Example Ingredients
- Original language: English
- Number of items: 1
- Dimensions: 9.48" h x 1.55" w x 7.72" l, 3.56 pounds
- Binding: Hardcover
- 928 pages
From the Back Cover
As in the first two editions, Park's Contemporary Engineering Economics, 3e stimulates student enthusiasm and imagination with the use of real-world applications and contexts throughout the book in chapter opening scenarios, homework problems, and self-test questions.
- All sections are updated to reflect the latest tax laws, interest rates, and other financial developments.
- The chapters are now organized into five parts. Three new chapters (Chapters 2, 3, and 6) have been added.
- Chapter 2 (Understanding Financial Statements)
About the Author
Dr. Chan S. Park is an Alumni Professor of Industrial & Systems Engineering at Auburn University. He holds industrial engineering degrees from Purdue University (M.S.) and the Georgia Institute of Technology (Ph.D.). He is a licensed professional engineer in the state of Florida.Dr. Park has written numerous technical papers on economic decision analysis and manufacturing economics, and he is the co-author of Advanced Engineering Economics published by John Wiley and Sons (1990). He has received several research awards for his papers on economics, including the 1987 Alfred V. Bodine SME Award from the Society of Manufacturing Engineers for the best paper on machine tool economics; he is a two-time recipient of the Eugene L. Grant Award for the best paper published in The Engineering Economist (1990, 1991); and he has also received the Outstanding Publication Award from the Institute of Industrial Engineers (1991). Dr. Park has held office for the Institute of Industrial Engineers and the American Society of Engineering Education. He has been the manuscript editor for The Engineering Economist since 1987.
Excerpt. © Reprinted by permission. All rights reserved.
What is "Contemporary" About Engineering Economics?Decisions made during the engineering design phase of product development determine the majority of the costs of manufacturing that product (some say 85%). As design and manufacturing processes become more complex, the engineer is making decisions that involve money more than ever before. Thus, the competent and successful engineer in the twenty-first century must have an improved understanding of the principles of science, engineering, and economics, coupled with relevant design experience. Increasingly, in the new world economy, successful businesses will rely on engineers with such expertise. Economic and design issues are inextricably linked in the product/service life cycle. Therefore, one of my strongest motivations for writing this text was to bring the realities of economics and engineering design into the classroom and to help students integrate these issues when contemplating many engineering decisions. With the advent of information technology, the Internet becomes an indispensable tool in exchanging information. Accordingly, we have developed a comprehensive companion website to the book to provide numerous teaching and learning aids. I believe that our website is a critical resource for transitioning the teaching of engineering economy into the twenty-first century. Of course my underlying motivation for writing this book was not simply to address contemporary needs, but to address as well the ageless goal of all educators: to help students to learn. Thus, thoroughness, clarity, and accuracy of presentation of essential engineering economics was my aim at every stage in the development of the text.
Changes in the Third EditionIn the complex and changing world of a global economy in an age of information, the practice of engineering economics is dynamic and as new developments occur, they should be incorporated into a textbook such as this one. In addition, the author and publisher are constantly seeking ways of improving the book in terms of clarity and understanding. As a result, we have made several important changes in this edition, including the following:
- The overall book design style has been changed. The new design format allows us to use a second color more effectively to highlight the most important information and separate examples from the main text reading, providing an effective study and review tool for students.
- There are 17 chapters, including three new chapters. Each chapter is classified into one of five parts:
- Part I: Financial and Cost Information;
- Part II: Money and Investing;
- Part III: Evaluating Business and Engineering Assets;
- Part IV: Development of Project Cash Flows; and
- Part V: Special Topics in Engineering Economics.
- All sections were updated to reflect the latest tax laws, interest rates, and other financial developments.
- A discussion on end-of-chapter "Computer Notes" is consolidated into the website for Contemporary Engineering Economics:
http://www.prenhall.com/park or http://www.eng.auburn.edu/~Park/cee.html
This allows us to remove all Microsoft Excel spreadsheet discussions from the main text. Now students can download various spreadsheet templates from the website and open directly in Excel for Windows. The obvious benefit is that it is no longer necessary to enter the spreadsheets by hand. Users can then modify the basic templates for the specific problem at hand.
- About one third of examples and self-test questions in the main chapters are either new or revised ones to reflect the contemporary nature of economic decision problems.
- In Chapters 9 and 14, some of the advanced topics (or optional materials) such as the multiple-rates of return problems and risk simulation have been removed from the main text and placed in the Appendix. This separation will allow the instructors to budget their lecture hours more effectively according to their audience and curriculum.
- Chapter 1 (Engineering Economic Decisions) is completely revised to reflect the ever-expanding role of engineers in the new economy. The main purpose of the opening chapter is to provide students with the general scope of their respective roles in making a variety of engineering as well as business decisions.
- Chapter 2 (Understanding Financial Statements) is a new chapter for the third edition. The main purpose of this chapter is to introduce the basics of business language, known as financial accounting, so that engineers can understand and speak in a common language when it comes to making a variety of business decisions. Engineers should understand some of the basics of accounting, as they are constantly involved in a variety of business decisions.
- Chapter 3 (Cost Concepts and Behaviors), also a new chapter, covers the various cost definitions as well as their behaviors in decision making. In particular, it discusses the marginal concept, which is the basis for any economic decision. The section on short-term operational economic decisions (commonly known as Present Economic Studies) is detailed in this chapter.
- Chapter 4 (Time is Money) retains most of examples as well as the presentations in Chapter 2 of the second edition. Several new examples are introduced and the topics involving equivalence concepts are streamlined.
- Chapter 5 (Understanding Money and Its Management) retains much of the materials in Chapter 3 of the second edition, but contains new sections on personal finance such as credit cards, commercial loans, and home mortgages.
- Chapter 6 (Principles of Investing) is a new chapter geared toward unraveling the mysteries of the financial markets—the language, the players, the strategies, and above all, the risks and rewards of investments, as well as their ups and downs. Even though all the examples are drawn from the financial markets related to personal investments, the same principles should govern general corporate investment decisions.
- Chapter 7 (Present Worth Analysis) is much the same as Chapter 4 of the second edition, except that the principles of comparing mutually exclusive projects have been covered in greater detail.
- Chapter 12 (Developing of Project Cash Flows) is equivalent to Chapter 9 of the second edition, except that the subjects of working capital investment and the generalized cash flow approach have been streamlined in terms of presentation.
- Chapter 14 (Project Risk and Uncertainty) has been expanded to include decision tree analysis.
- Chapter 15 (Replacement Decisions) has been divided into two parts: The first part introduces the basic replacement decision problems without considering the effects of income taxes, whereas the second part revisits the same decision problems with income tax consideration. This treatment allows students to learn this important concept without the additional complications of income taxes.
Overview of the TextAlthough it contains little advanced math and few truly difficult concepts, the introductory engineering economics course is often a curiously challenging one for the sophomores, juniors, and seniors who take it. There are several likely explanations for this difficulty.
- The course is the student's first analytical consideration of money (a resource with which he or she may have had little direct contact beyond paying for tuition, housing, food, and textbooks).
- An emphasis on theory—while critically important to forming the foundation of a student's understanding may obscure for the student the fact that the course aims, among other things, to develop a very practical set of analytical tools for measuring project worth. This is unfortunate since, at one time or another, virtually every engineer—not to mention every individual—is responsible for the wise allocation of limited financial resources.
- The mixture of industrial, civil, mechanical, electrical, and manufacturing engineering, and other undergraduates who take the course often fail to "see themselves" in the skills the course and text are intended to foster. This is perhaps less true for industrial engineering students, whom many texts take as their primary audience, but other disciplines are often motivationally shortchanged by a text's lack of applications that appeal directly to them.
Goal of the TextThis text aims not only to provide sound and comprehensive coverage of the concepts of engineering economics but also to address the difficulties of students outlined above, all of which have their basis in an inattentiveness to the practical concerns of engineering economics. More specifically, this text has the following chief goals:
- To build a thorough understanding of the theoretical and conceptual basis upon which the practice of financial project analysis is built.
- To satisfy the very practical needs of the engineer toward making informed financial decisions when acting as a team member or project manager for an engineering project.
- To incorporate all critical decision-making tools—including the most contemporary, computer-oriented ones that engineers bring to the task of making informed financial decisions.
- To appeal to the full range of engineering disciplines for which this course is often required: industrial, civil, mechanical, electrical, computer, aerospace, chemical, and manufacturing engineering, as well as engineering technology.
PrerequisitesThe text is intended for undergraduate engineering students at the sophomore level or above. The only mathematical background required is elementary calculus. For Chapter 14, a first course in probability or statistics is helpful but not necessary, since the treatment of basic topics there is essentially self-contained.
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Most helpful customer reviews
0 of 0 people found the following review helpful.
Problem numbers are not the same as original 6E
By Trevor S
Chapter content seems to be the same, and the book binding is fine quality. The book problems themselves are the same as the original 6 edition, but the numbers are different. (for example, a 1000 dollar principle would be a 1500 dollar principle for the same problem for the international edition). If you don't need the problems to be the same, this is a good, cheaper alternative to the original 6 edition copy of this book.
0 of 0 people found the following review helpful.
I have to mention the most annoying thing in this book
By Kevin Walsh
Not the easiest book to understand.
I have to mention the most annoying thing in this book:
Example problems often reference previous example problems. Thats normal. BUT this book builds on that to a stupid degree. I think the author was lazy and the editors didn't care. Those example problems are very hard to follow.
Example (numbers are not actual): problem 6.8 references problem 6.7, but 6.7 references problems 6.6 and doesnt have its own dataset.
0 of 0 people found the following review helpful.